Britain and the United States will be seeing "tremendous increases" in bilateral trade, President Donald Trump said on Thursday as he met with Prime Minister Theresa May.

It was their first encounter since the pair clashed over Trump's retweets of far-right videos, and since Trump cancelled a visit to London this month, criticising the new location of the US embassy there.

In Davos, Trump said he and British Prime Minister Theresa May "like each other a lot" and even told her: "We love your country."

The two leaders insisted their relationship isn't strained: "We've had a great discussion," May said.

"The discussions... that will be taking place are going to lead to tremendous increases in trade between our two countries, which is great for both in terms of jobs. We look forward to that and we are starting that process, pretty much as we speak," Trump said.

Seeking new trade buddies

May said in an earlier speech that after leaving the European Union, the UK will be seeking new economic partners and be an active advocate for free trade.

"Every country must support and shape the rules for free and fair trade and investment. We cannot pull in different directions," she said.

All eyes are on Trump, who is in Davos for the first time. Never invited as a businessman, he's now mingling with the same globalists he'd bashed during his presidential campaign.